If the marginal propensity to consume = 0.75, then:
a. the marginal propensity to save = 0.75.
b. the marginal propensity to save = 1.33.
c. the marginal propensity to save = 0.20.
d. the marginal propensity to save = 0.25.
e. since the marginal propensity to save and the marginal propensity to consume are unrelated, we cannot determine the marginal propensity to save from the information given.
d
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Public universities, by charging tuition ________ the marginal cost of education, ________ the number of students
A) below; decrease B) below; increase C) above; decrease D) above; increase
A perfectly horizontal demand curve has
A) zero elasticity. B) some positive finite elasticity. C) negative elasticity. D) perfect elasticity.
In Macroland, autonomous consumption equals 100, the marginal propensity to consume equals 0.75, net taxes are fixed at 40, planned investment is fixed at 50, government purchases are fixed at 150, and net exports are fixed at 20. Autonomous expenditure equals:
A. 290 + 0.75Y. B. 290. C. 320. D. 320 + 0.25Y.
Firms improve their market positions over time through which of the following?
(A) path dependence (B) the innovation cycle (C) core rigidities (D) imitating other firms